The opinion was expressed during a budget analysis organised by Department of Economics and Co-operation, in association with Planning Forum at Humanities Hall at UoM yesterday.
Although it is not a popular budget, it is an economic growth-oriented budget, asserted economists. “For the last two years, government was criticised for being pro-corporate and pro-industry. Every day, prime minister and other ministers spoke about Digital India, Start-ups and Make in India, which created an impression that this government favours industrial and corporate sectors, and major sectors including agriculture and rural sectors have been neglected. This also may be the reason why the government has given more importance to agriculture and rural sector development in this budget,” said economist Prof B S Sreekantaradhya.
He was speaking during the budget analysis organised by Department of Economics and Co-operation, in association with Planning Forum at Humanities Hall in university campus here on Tuesday. Analyzing the Union Budget for the year 2016-17 which was presented by Finance Minister Arun Jaitley on Monday, Prof B S Sreekantaradhya said: “Four states with agriculture as the predominant occupation going for election this year might be one among the reasons for giving more importance on agriculture and rural development. There may be a political or an economic reason behind this budget, but at the end of the day it will be benefiting the farmers at large.”
“Apart from agriculture, the Finance Minister has given more importance to infrastructure, which accelerates the growth of the economy. When compared to other countries, India is really doing well. India’s growth rate is 7 to 7.5 percent – much better than other countries. India is the fastest growing economy in the world. Compared to neighbouring countries, our progress is satisfactory. Many countries including Europe and America are facing financial recovery problems, and China’s growth has been sluggish,” he noted.
Sreekantaradhya also mentioned that during this budget many people expected an increase exemption limit of IT from 2.5 lakh to 3 lakh. Apart from this, they also expected an increase in incentives saving but it was not done. Setting a deadline for black money holders is a good initiative. He also mentioned that the reduction in oil prices from 100 dollars to 25 to 30 dollars has helped the finance minister to get additional revenue to the government.
Economists Prof Sreekantaradhya, Prof CK Renukarya, M V Srinivasa Gowda and S Mahendra Kumar appreciated FM for managing the budget very well and favouring agro and rural sectors. The economists concluded that although it may not be a popular budget, from an economic point of view, it is a growth-oriented budget.
SBM Chair Visiting Professor Prof CK Renukarya appreciated Finance Minister Arun Jaitley’s visionary budget. Many were telling that the central government pro-corporate and pro-industry but they have silenced the critics by favouring agriculture and rural sectors during this budget. Especially the insurance schemes for crop loss will definitely be a big boost for farmers and it may stop them from committing suicide. He also appreciated FM for bifurcating budget into nine pillars such as agriculture, rural, infrastructure, social, skill, information, finance, government, fiscal, and tax reformations.
M V Srinivasa Gowda, Visiting Professor and Planning Commission Chair and S Mahendra Kumar, Chairman of Department of Economics and Co-operation who also spoke on the occasion appreciated the union budget. The experts also mentioned that though there is no direct subsidy to farmers, it will benefit the farmers in the long run. They have extracted money from rich to accommodate the poor and middle class people, they opined.
BOX: Unaware of Budget-2016!
Majority of the economics students didn’t go through newspaper regarding Union Budget. When Prof B S Sreekantaradhya asked students about how many of them went through newspaper, He found out to his surprise that just 10 to 15 percent of the students present had gone through the budget details in newspapers. “You are all students of economics and future economists. When the union budget was presented Monday, you Post Graduate students studying economics should have been curious and well-informed about the budget”. He called upon the students to get updated by going through newspapers.